STAND. COM. REP. NO. 744-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2188
                                     H.D. 2




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Consumer Protection and Commerce, to which
was referred H.B. No. 2188, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO ADMINISTRATIVE PROCEDURE,"

begs leave to report as follows:

     The purpose of this bill is to enact a new process to allow
administrative rules to:

     (1)  Be approved immediately after an agency develop and use
          flexible approaches to meeting the needs of the agency
          and persons affected by the proposed rules; and

     (2)  Allow a representative designated by the agency head to
          ensure that the rules were developed in concert with
          the spirit and intent of the law. 

The bill also extends the repeal date of the Small Business
Regulatory Flexibility Act from June 30, 2002, to June 30, 2006.

     Testimony in support of this measure was submitted by the
Kona-Kohala Chamber of Commerce, Big Island Business Council,
General Contractors Association of Hawaii, Small-Business
Economic Revival Force, Building Industry Association of Hawaii,
Chamber of Commerce of Hawaii, Hawaii Nurses' Association, Hawaii
Association for Realtors, and the Small Business Regulatory
Review Board.  Testimony commenting on this measure was submitted
by the Department of Business, Economic Development, and Tourism
and the Land Use Research Foundation of Hawaii.  Testimony in

 
 
                                 STAND. COM. REP. NO. 744-00
                                 Page 2

 
opposition to this measure was submitted by the Attorney General
and ILWU Local 142.

     Your Committee has made the following amendments to this
measure by:

     (1)  Including a definition of "head of the agency" for
          clarity;

     (2)  Deleting the agency compliance provision because it is
          cumulative;

     (3)  Clarifying that the responsibility to ensure that the
          rules are developed in concert with the spirit and
          intent of the law lies with the head of the agency and
          not a designated representative; and

     (4)  Deleting the amendment that removes the approval of the
          governor for the adoption, amendment, or repeal of any
          rule.

     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 2188, H.D. 1, as amended herein, and
recommends that it pass Third Reading in the form attached hereto
as H.B. No. 2188, H.D. 2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Consumer
                                   Protection and Commerce,



                                   ______________________________
                                   RON MENOR, Chair